Showing posts with label stocks. Show all posts
Showing posts with label stocks. Show all posts
3:57 PM
FedEx (FDX) traded at an all-time high today, up 8.64, translating into a 6.16% gain on a volume of 5.6 million shares. A $.20 dividend will be paid to shareholders of record as of June 19, 2014.
Their May ended quarter results were much better than expected at $2.46 per share. The FedEx air fleet has been able to use new Boeing 777 planes which are efficient energy users.
The company's strengths are seen in many areas as an article in thestreet.com points out.
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| chart from money.cnn.com |
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| Boeing 777 |
5:01 PM
The DJIA, Nasdaq, and S&P 500 all closed higher. Nasdaq led it all.
Tesla and Netflix both had good days.
Core inflation rose 0.3% from last month.
Asian stocks were mixed.
Source: article from money.cnn.com
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| Nasdaq Chart from cnn.com |
Core inflation rose 0.3% from last month.
Asian stocks were mixed.
Source: article from money.cnn.com
10:03 PM
The stock market has had a 6.5% rally. However a handful of heavy weights have been quietly dumping their stock. Warren Buffet is one of those. He has been disappointed in earnings from companies like Johnson and Johnson, Proctor and Gamble, and Kraft Foods.
Buffet has been reducing his holdings in consumer stocks. With the American economy at 70% consumer spending, Buffet seems to have a lack of consumer confidence of his own. He's not alone.
John Paulson is clearing out his U.S. stock portfolio too. During Q2 of 2012 he dumped 14 million shares of JPMorgan Chase. George Soros sold all of his bank stocks.
Why a dump all of a sudden? Perhaps the professionals are aware of a big correction coming. A correction one economist has pegged at 90%. That economist is Robert Wiedemer, author of the best-selling book Aftershock.
Mr. Wiedemer correctly predicted the housing debacle of 2006.
One reason why he thinks a correction is coming is The Federal Reserve's money printing practice.
My feeling is that inflation follows. If inflation hits 10%, 10-year Treasury bonds lose half their value. 20% inflation means no value at all.
Buffet has been reducing his holdings in consumer stocks. With the American economy at 70% consumer spending, Buffet seems to have a lack of consumer confidence of his own. He's not alone.
John Paulson is clearing out his U.S. stock portfolio too. During Q2 of 2012 he dumped 14 million shares of JPMorgan Chase. George Soros sold all of his bank stocks.
Why a dump all of a sudden? Perhaps the professionals are aware of a big correction coming. A correction one economist has pegged at 90%. That economist is Robert Wiedemer, author of the best-selling book Aftershock.
Mr. Wiedemer correctly predicted the housing debacle of 2006.
One reason why he thinks a correction is coming is The Federal Reserve's money printing practice.
My feeling is that inflation follows. If inflation hits 10%, 10-year Treasury bonds lose half their value. 20% inflation means no value at all.
9:38 PM
What should we expect with the economy this year? Well, we'll have growth at about 2% with a healing housing market, reinforced consumer spending and a slowly improving job market.
What's this mean to investors? The stage should be set for good investor results with a continuation of modest growth. Despite modest economic expansion in 2012, earnings for companies in the S&P 500 grew by almost 5%. Companies in 2013 will continue to concentrate on profits rather than expansion.
Despite greater volatility, earnings and stock prices have steadily grown over time. Since 1954 earnings increased at an average annual rate of 6.3%. Stocks were up 6.9% per year for a total average return of 10.5% annually with dividends reinvested.
There are three items to watch. The GDP, S&P 500 Index, and S&P 500 Earnings. The stock market is not back at its October 2007 levels. Look at current earnings.
Expect a 10% correction in the stock market. There will be no relief from low interest rates.
The IMF projects global growth to be 3.6% in 2013.
One sector to look at is healthcare stocks. Key points to consider are a 30 million increase in number of insured. People the age of 65 is increasing. Healthcare spending is increasing. A new innovation is personalized medicine. The healthcare sector has outperformed the S&P over the last 5 years.
What's this mean to investors? The stage should be set for good investor results with a continuation of modest growth. Despite modest economic expansion in 2012, earnings for companies in the S&P 500 grew by almost 5%. Companies in 2013 will continue to concentrate on profits rather than expansion.
Despite greater volatility, earnings and stock prices have steadily grown over time. Since 1954 earnings increased at an average annual rate of 6.3%. Stocks were up 6.9% per year for a total average return of 10.5% annually with dividends reinvested.
There are three items to watch. The GDP, S&P 500 Index, and S&P 500 Earnings. The stock market is not back at its October 2007 levels. Look at current earnings.
Expect a 10% correction in the stock market. There will be no relief from low interest rates.
The IMF projects global growth to be 3.6% in 2013.
One sector to look at is healthcare stocks. Key points to consider are a 30 million increase in number of insured. People the age of 65 is increasing. Healthcare spending is increasing. A new innovation is personalized medicine. The healthcare sector has outperformed the S&P over the last 5 years.
12:49 PM
- Obama and Boehner pick up talks where they left off.
- A big drop in the stock market sends a message.
- The government goes off the fiscal cliff.
- No deal for at least six weeks.
- Boehner calls a House vote on what President Obama wants.
- A partial deal is struck.
- Stock markets hang in there and President Obama and Congress think the fiscal cliff isn't so bad.
Obama has dropped his proposal to extend a temporary cut in Social Security payroll taxes paid by 163 million workers. Republicans want that tax to go back up.Obama is offering to reduce cost-of-living increases for Social Security recipients. Republicans have been seeking this as a key to long-term deficit reduction. Obama continues to reject the Republican plan to raise the eligibility age for Medicare from 65 to 67. Boehner now says raising the eligibility age is not essential. Obama and Boehner both propose raising taxes on dividends and capital gains from 15 percent to 20 percent.
CNBC source story #2
8:49 PM
High frequency. That's how I describe the market economy these days. We have to be on a whole new high frequency to keep up with what's going on. Or at least I'd like to think so. We have had quite a bit of information to digest. With Quantative Easing in place with the Fed buying mortgage backed securities at a furious pace, which will keep interest rates low; perhaps as far out as 2016, giving investors more incentive for dividend paying stocks. ETF's are also a big product now (no more stock picking).
What will Treasuries be like in one year? Flatlined? Well, maybe. The demand for them surely can't be increasing. Someone must know something I don't. Well.... yeah.
The S&P 500 has had a good three-year run. Throughout it all.... fiscal cliff, etc., the S&P has been a leader as far as market barometers go.
The economy still has a demand problem.
Labor share of income hit an all-time low in 2012. Corporate investors reaped nice gains as the labor market stays weak. The Retail ETF (XRT) beat the S&P 500, while the Homebuilders ETF (XHB) was the cream of the crop.
And all of a sudden housing is back. Thank you Ben! The Fed move is tying more to housing than what I had expected. With that...........
expect housing to continue the recovery.... watch home affordability. And continued labor market woes. Recovering labor yes, but at a slow pace.
The central banker remains at the forefront around the globe. Bernanke really wants the world to jump on board his program for more bond buying. Will the foreign central banks also but mortgage backed securities. Will they invest in our housing? They just might.
That should ease unemployment. But what about inflation? Are we against the inflation clock? The Fed does not expect inflation to go above 2% at all. Someone, somewhere has to be shaking their head and wondering what the Fed is taking. It really can't be a dose of reality, can it?
I feel the Fed has told the world that we are all in this together. Will all the players come to the table and play the Fed game? We shall see.
34 charts from theatlantic.com was used as a source story.
11:00 PM
Investors are starving for yield. With the Fed's QE3 program going and shifting the curve to riskier fixed income assets, yields are being driven down. Investors are soaking up bonds. With this money printing mentality we see there is no more risk-free assets. Investors are dumping their money into bonds and getting a better yield than what money market and savings accounts are paying.
There, however, is a pitch for buying good quality stocks. Macro-economic factors need to be weighed more carefully. Equities are always competing for market share with fixed-income assets. These are unprecedented times. The Fed's artificially low interest rates make fixed-income investment a guaranteed loser. When QE3 was announced, I had the feeling that investors were being fed some good tidings for investing in Treasuries. But now what I heard was too good to be true.
There, however, is a pitch for buying good quality stocks. Macro-economic factors need to be weighed more carefully. Equities are always competing for market share with fixed-income assets. These are unprecedented times. The Fed's artificially low interest rates make fixed-income investment a guaranteed loser. When QE3 was announced, I had the feeling that investors were being fed some good tidings for investing in Treasuries. But now what I heard was too good to be true.
9:45 PM
Wall Street benefited from the Eurozone headline fatigue Tuesday the 5th of June. The European Central Bank rate decision is tomorrow the 6th. What do the eurocrats have in the central system pipeline? We'll soon find out.
The waiting game is on for U.S. stocks. After an impressive first quarter in 2012,the engines haven't really hit higher rpm's in the second quarter. The bias is negative and there is no news. No news is good news.... right?
Federal Reserve Chairman Ben Bernanke is heading to Capital Hill on Thursday. QE3 rumbling seems to be getting louder, but nothing definitive. Pullbacks could bring more money into the market, and we'll see.
The Fed meets on June 19 and 20.
The waiting game is on for U.S. stocks. After an impressive first quarter in 2012,the engines haven't really hit higher rpm's in the second quarter. The bias is negative and there is no news. No news is good news.... right?
Federal Reserve Chairman Ben Bernanke is heading to Capital Hill on Thursday. QE3 rumbling seems to be getting louder, but nothing definitive. Pullbacks could bring more money into the market, and we'll see.
The Fed meets on June 19 and 20.